Georgia

Corporate - Withholding taxes

Last reviewed - 23 June 2020

Non-resident enterprises earning income from Georgian sources, other than through a PE, are subject to WHT at the following rates:

Income WHT (%)
Dividends 5
Interest 5
Royalties 5
Oil and gas subcontractor income 4
International transportation/communication 10
Income from services rendered in Georgia 10
Other Georgian-source income 10
Insurance and re-insurance 0

Payments of interest, royalties, or other Georgian-source income to non-residents registered in so called ’black listed’ countries are subject to WHT at a 15% rate.

The list of such countries is determined by the MoF of Georgia.

Double tax treaties (DTTs)

For those countries with which Georgia has entered into DTTs, the WHT rates are the following:

Recipient WHT (%)
Dividends Interest (1) Royalties
Non-treaty (14) 5 5 5
Treaty:      
Armenia 5/10 (15) 10 5
Austria 0/5/10 (2) 0 0
Azerbaijan 10 10 10
Bahrain 0 0 0
Belarus 5/10 (15) 5 5
Belgium 5/15 (15) 10 5/10 (3)
Bulgaria 10 10 10
China, People's Republic of 0/5/10 (2) 10 5
Croatia 5 5 5
Cyprus 0 0 0
Czech Republic 5/10 (15) 8 0/5/10 (4)
Denmark 0/5/10 (2) 0 0
Egypt 10 10 10
Estonia 0 0 0
Finland 0/5/10 (2) 0 0
France 0/5/10 (6) 0 (5) 0
Germany 0/5/10 (6) 0 0
Greece 8 8 5
Hungary 0/5 (8) 0 0
Iceland 5/10 (15) 5 5
India 10 10 10
Iran 5/10 (15) 10 5
Ireland 0/5/10 (9) 0 0
Israel 0/5 (13) 0/5 (10) 0
Italy 5/10 (15) 0 0
Kazakhstan 15 10 10
Korea 5/10 (15) 10 10
Kuwait 0/5 (11) 0 10
Latvia 5/10 (15) 5 5
Liechtenstein 0 0 0
Lithuania 5/15 (15) 10 10
Luxembourg 0/5/10 (2) 0 0
Malta 0 0 0
Netherlands 0/5/15 (2) 0 0
Norway 5/10 (15) 0 0
Poland 10 10 10
Portugal 5/10 (15) 10 5
Qatar 0 0 0
Romania 8 10 5
San Marino 0 0 0
Serbia 5/10 (15) 10 10
Singapore 0 0 0
Slovak Republic 0 5 5
Slovenia 5 5 5
Spain 0/10 (12) 0 0
Sweden 0/10 (13) 0 0
Switzerland 10 0 0
Turkey 10 10 10
Turkmenistan 10 10 10
Ukraine 5/10 (15) 10 10
United Arab Emirates 0 0 0
United Kingdom 0/15 (7) 0 0
Uzbekistan 5/15 (15) 10 10

Notes

  1. Some agreements provide a 0% rate on the interest paid by the government or any of its units or on the interest guaranteed by them; this table doesn’t consider such provisions.
  2. The 0% rate applies if the foreign company owns at least 50% of the Georgian company and has invested more than 2 million euros (EUR)/US dollars (USD).
  3. Royalty rate paid for the enterprise is 5%.
  4. The 0% rate refers to the copyright of any literature, art, or scientific works (except software), and films and records; the 5% rate refers to lease of techniques.
  5. The 0% rate applies to interest on bank loans and commercial credits.
  6. The 0% rate applies if the foreign company owns at least 50% of the Georgian company and has invested more than EUR 3 million.
  7. The 0% rate applies if the foreign company owns at least 50% of the Georgian company and has invested more than 2 million pound sterling (GBP).
  8. The 0% rate applies if the foreign company owns at least 25% of the Georgian company in any continuous 12-month period prior to distribution of dividends.
  9. The 0% rate applies if the foreign company controls at least 50% of the voting power in the Georgian company and has invested more than EUR 2 million.
  10. The 0% rate applies for certain types of interest.
  11. The 0% rate applies if the foreign company has invested in the Georgian company more than 3 million United States dollars (USD).
  12. The 0% rate applies if the foreign company owns at least 10% of the Georgian company.
  13. The 0% rate applies if the foreign company owns at least 10% of the capital or the voting power of the Georgian company.
  14. Domestic WHT rates are applicable when a treaty provides a relief with more unfavourable rates.
  15. Domestic WHT rate on dividends is 5%. A treaty provides a relief with the same or more unfavourable rate, thus the domestic rate is applicable.